Due to headline risk I'll probably be out of these puts by end of day (if they are working, otherwise I'll be exiting due to stopping myself out) but in theory bad closes on Fridays should lead to bad Monday opens. But with our premarket futures friends always hanging around, this rule has been banished for most of the past year and a half. Short of BP pulling off a miracle with that oil well I just don't see any positive catalyst now that the US is being shown to be an economy completely dependent on government and Fed stimulus.... or China.
We are setting up for a very interesting post election scenario as I expect incumbents to be ransacked [Jan 20, 2010: What Can (Scott) Brown Do for You? Not Much... if you are an Incumbant] by a public sick of partisanship and continued drunken sailor spending, but with an economy that needs the steroids of constant government spending to show a facade of growth. [Nov 18, 2009: Our Economy is on Steroids] Perhaps Bernanke can take rates to -2%....
On another note I am wondering if I should just sell everything in the long portfolio and buy Salesforce.com, VMWare, Apple, and Baidu. Why bother with anything else - these stocks could trade at 60-80x EPS (ex-Apple) and people still want them.